AMN Healthcare Services Inc. (NYSE: AMN) today upgraded its revenue estimate for its fourth quarter ended Dec. 31 amid ongoing healthcare labor shortages and record demand. AMN cited strong demand across all segments led by its nurse and allied business along with approximately $70 million more in labor disruption revenue than included in the initial guidance.

The staffing giant now forecasts fourth-quarter revenue will be between $1.35 billion and $1.36 billion. Its previous forecast on Nov. 4 estimated fourth-quarter revenue of between $1.13 billion and $1.15 billion.

“Healthcare labor shortages are pervasive and expected to persist for some time, highlighting the need for short- and long-term workforce solutions and leading to wage inflation,” CEO Susan Salka said. “These influences were even stronger than expected in the fourth quarter of 2021 and are continuing into 2022.”

AMN expects to release fourth-quarter results next month.

Salka added that AMN continues to see record demand for its services in this quarter. The company expects first-quarter revenue to be more than $1.1 billion.

The announcement of the upgraded revenue forecast comes ahead of the company’s participation in the 40^th annual J.P. Morgan Healthcare Conference on Tuesday.